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Saturday, 14 September 2013

Jim Rogers Blog - Uncle Ben is a Historic Disaster?

Not true? Everybody is printing money is an effort to debase their currencies so that exports remain competitive, while consumers will suffer with rising prices that will not be reflected in inflation indices. The game is on.

First, we are not promoting Uncle Ben's actions and decisions in anyway - it is just that all these guys are boxed in and have few choices to consider. They are boxed in for a number of different reasons, but if we cut to the chase, physical-reality's constraints are now governing what both central bankers and their abstractionist economics can and can't do. 

So, what's really going on? The secret is we are past "peak everything" making the inputs needed for production and consumption outputs scarcer. As a result, if you are chasing these scarce physical objects with abstracts (money) and all the other chasers are doing the same, how would you try to win the chase? You are right, have more abstracts than the other chasers - which translates into what? Print more money.

What does the end game of this chase look like? Simple extrapolation says we will ultimately have printed lots of money, but for some reason it didn't create anymore inputs for the economic process anywhere. I wonder why that is?

So in a funny way we do not really blame Uncle Ben and his friends because not even Jimmy has come up with a solution to fix this predicament. Why? Simply because there isn't one.

First Financial Insights
September 13, 2013  

Poor Uncle Ben and friends...are just boxed in. Reality Check!


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